| Thu 30 Sep 2010, 15:21 | | FPT - Fountainhead Property Trust - Proposed acquisition by Absa Bank Limited as |
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FPT
FPT
FPT - Fountainhead Property Trust - Proposed acquisition by Absa Bank Limited as
Trustee for Foutainhead Property Trust ("Fountainhead") From FHP Managers
(Proprietary) Limited
Fountainhead Property Trust
A Collective Investment Scheme in property registered in terms of the Collective
Investment Schemes Control Act, No.45 of 2002 and managed by Fountainhead
Property Trust Management Limited
(Registration number 1983/003324/06)
Share code: FPT
ISIN code: ZAE000097416
("Fountainhead")
PROPOSED ACQUISITION BY ABSA BANK LIMITED AS TRUSTEE FOR FOUTAINHEAD PROPERTY
TRUST ("Fountainhead") FROM FHP MANAGERS (PROPRIETARY) LIMITED
1. INTRODUCTION
Unitholders are advised that Fountainhead has concluded an agreement ("the
agreement") for the acquisition of a 80% undivided share in Section 4 of the
proposed sectional title scheme, known as Constantia Valley, comprising part of
the Constantia Valley View Office Park, 4 Ellis Road, Constantia Kloof ("the
property") from FHP Managers (Proprietary) Limited ("FHP Managers") ("the
acquisition").
2. THE ACQUISITION
2.1 Rationale
The acquisition fits Fountainhead`s strategy to invest in quality office
properties located in prime nodes with long leases.
2.2 Consideration and terms of the agreement
The purchase price of the property is R204 million and will be purchased by ABSA
Bank Limited in its capacity as Trustee for Fountainhead. The effective date of
the acquisition is the transfer date which is anticipated to be in the month of
December 2010.
The agreement is subject to Competition Commission approval.
2.3 Small related party transaction
In terms of the JSE Limited ("JSE") Listing Requirements Section 10.7, the
acquisition is regarded as a small related party transaction and in terms of the
JSE Listings Requirements the valuation report, which was performed by Rode and
Associates (Proprietary) Limited, will lie open for inspection at Fountainhead`s
registered offices for a period of 28 days from the date of this announcement.
2.4 Details of the property
The property, based on the valuation conducted, as at 01 September 2010, is
valued at R203.956 million. The total rentable area of the property is 16 026 m2
(100% of rentable area) at an average net rental of R99.85 per m2 (as at 1
September 2010).
The weighted average rental escalation by rentable area for the property is
8.00% and the annualised property yield is 8.8%.
3. FINANCIAL INFORMATION RELATING TO THE ACQUISITION
The pro forma financial effects of the acquisition on Fountainhead`s basic
earnings per unit, headline earnings per unit, distribution per unit, net asset
value and tangible net asset value per unit for the six months ended 31 March
2010 are not material and have not been disclosed.
30 September 2010
Cape Town
Sponsor
Standard Bank
Date: 30/09/2010 15:21:01 Produced by the JSE SENS Department.
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